CRUST:

1 1/2 c. graham cracker crumbs
1/4 c. sugar
1/3 c. butter, melted

FILLING:

1 (8 oz.) pkg. cream cheese, at room temperature
1/4 c. sugar
2 tbsp. milk
3 1/2 c. frozen whipped topping, thawed
4 c. fresh sliced peaches, tossed in lemon juice
2 (3 oz.) pkg. instant vanilla pudding
3 1/2 c. cold milk
Sliced peaches for garnish

Combine crust ingredients and press into 9x13 inch pan. Chill.

For filling, beat cream cheese with sugar and 2 tablespoons milk until smooth. Fold in half of the whipped topping. Spread over crust. Arrange peaches on top in an even layer. Prepare pudding with 3 1/2 cups milk; pour over peaches. Spread on remaining topping before serving and garnish with sliced peaches. Yield: 12 servings.